Financial dimension values flow in D365FO. Materials and batch order example

Financial dimension values flow in  D365FO. Materials and batch order example

MS Dynamics 365 for Finance and Operations (aka D365FO) offers a very strong financial functionality. A company can collect financial data in different dimensions. For example collecting data for overhead expenses and adding a cost center for every ledger entry.

D365FO allows setting default values for different master records like products, vendors, customers, and so on. As an example, a cost center can be set on all finished goods items and materials consumed. These values go to the ledger by default.

In this post, I will show you how the default values go to the ledger. I use D365FO batch order functionality to demonstrate how it works. Continue reading “Financial dimension values flow in D365FO. Materials and batch order example”

Standard costing. Or how to control costs of production

Standard costing. Or how to control costs of production

Every company wants to achieve a high level of profit. Costs of production is a factor that can easily destroy the plan. It can be tricky to control those costs as they depend on prices and quantities of materials used, cost and hours of labor involved, and overhead costs.

The solution to manage that control has been available since at least the 1920s. At that time standard costing was introduced. A standard costing system helps you to take over control of manufacturing costs. Implementation of standard costing by leveraging modern Information Technology makes this control much easier, more efficient, and more affordable. Continue reading “Standard costing. Or how to control costs of production”

Ledger entries setup approach

Ledger entries setup approach

It’s been a long time since accountants kept journals on paper and posted amounts to a ledger book. Modern bookkeeping software creates general ledger entries automatically based on the business operations performed. In order to be able to post an entry, the usual need is to set up which account should be used for the exact operation in the software. In this post I would like to share the approach I usually follow to set up ledger postings in Dynamics 365 for Operations (aka Dynamics AX or Axapta).
Continue reading “Ledger entries setup approach”